the investment in the inventory will be 68% of $12.99 that is $8.83. The cost of carrying this will be 21 percent that is $1,85. If we multiply this by 204 units found above we get a yearly cost of $337.4. Now if the ordering is done once every two weeks then the ordering cost will be 26 X $20 = $520. if this is added to the above cost we get a total of $857.4.
Put yourself in Sue McCaskey’s position and prepare a detailed report to Dan Block and Ed Spriggs on managing the inventory of the EG151 exhaust gasket and the
DB032 drive belt. Be sure to present a proper inventory system and recognize all relevant costs.
For our free membership, please upload one paper to the site. Please fill out the form below to join the site. Your account will be activated